E1: 75AU: Holiday Maker Tax Setup

Applies to:

JD Edwards EnterpriseOne Australia/New Zealand Payroll - Version 9.0 and laterInformation in this document applies to any platform.

Goal

NOTIFICATION (Updated 03/07/2017)

After publicizing the new Holiday Maker functionality, it was determined that our tax limits/rates were incorrect. This document has been updated with new information required in order for the Holiday Maker Tax functionality to work properly.

In addition, you will need to take an additional bug. The bug will provide the ability to utilize an employee's YTD gross wage over and beyond $37,000 to calculate the correct Holiday Maker Tax. Please visit this document periodically for updates on when the ESU is available.

As of January 1, 2017, the Australian government implemented new tax rates for working holiday makers. The new rates apply to employees holding the following visa classifications:

Subclass 417 (Working Holiday) visa

Subclass 462 (Work and Holiday) visa

A bridging visa allowing the individual to earn an income in Australia if:

this visa was granted under the Migration Act 1958,

with the eventual goal of obtaining a subclass 417 or 462 visa,

the matter is still undecided and,

the most recent visa granted, other than the bridging visa, was a subclass 417 or 462.

The income tax amendment under the Working Holiday Maker Reform Bill 2016 applies a 15% income tax rate to holiday maker taxable income on amounts up to $37,000 with the balance taxed at ordinary tax rates.

The rates of tax applying to a taxpayer’s ‘working holiday taxable income’ for the 2017 income year are:

Working Holiday Taxable Income for 2017 Income Year

Taxable Income

Tax Payable

$0 - $37,000

15%

$37,001 - $87,000

32.5%

$87,001 - $180,000

37%

$180,000+

45%

Please refer to the Australian Taxation Office (www.ato.gov.au) for more details on the Working Holiday Makers tax.

Due to the timing of this new functionality, JD Edwards Australian/New Zealand Payroll users will need to implement a partial workaround for the 2016-17 reporting year. Moving forward, effective 1 July 2017, the complete functionality will be in place.

Solution

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